BRITISH VIRGIN ISLANDS - Mossack Fonseca & Co.

26/2005
(a) the intention to create a mortgage or charge; and
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(b) the amount secured by the mortgage or charge or how that
amount is to be calculated.
(4) Where the governing law of a mortgage or charge of shares in a
company is not the law of the Virgin Islands
(a) the mortgage or charge shall be in compliance with the
requirements of its governing law in order for the mortgage or
charge to be valid and binding on the company; and
(b) the remedies available to a mortgagee or chargee shall be
governed by the governing law and the instrument creating
the mortgage or charge save that the rights between the
mortgagor or mortgagee as a member of the company and the
company shall continue to be governed by the memorandum
and the articles of the company and this Act.
(5) Where the governing law of a mortgage or charge of shares in a
company is the law of the Virgin Islands, in the case of a default by the
mortgagor or chargor on the terms of the mortgage or charge, the
mortgagee or chargee is entitled to the following remedies:
(a) subject to any limitations or provisions to the contrary in the
instrument creating the mortgage or charge, the right to sell the
shares, and
(b) the right to appoint a receiver who, subject to any limitations or
provisions to the contrary in the instrument creating the
mortgage or charge, may
(i) vote the shares,
(ii) receive distributions in respect of the shares, and
(iii) exercise other rights and powers of the mortgagor or
chargor in respect of the shares,
until such time as the mortgage or charge is discharged.
(6) Subject to any provisions to the contrary in the instrument of
mortgage or charge of shares of a company, all amounts that accrue
from the enforcement of the mortgage or charge shall be applied in
the following manner:
AE/ET/Pub./bg/03.2007